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Active Power
Also known as ‘Real Power’ or simply ‘Power’. Active power is the rate of producing, transfer or using electrical energy. Measured in watts and often-expressed in kW or MW.

Agreed Capacity
An agreed amount of electrical load for a property, as stated in the property’s Connection Agreement with the local Distribution Network Operator (DNO).

Annual Quantity (AQ)
It is the sum of the annual consumption of all meters on a site. This comes from National Grid, and is based on historical usage from previous years. Measured in kWh (electricity) or Therms (gas). Supply Point AQ is the total annual consumption of all meters on a site. Meter Point AQ is the AQ for a particular Meter Point.

Automatic Meter Read (AMR)
AMR is the term given to a system that provides automatic meter readings remotely. It uses telephone technology and holds the ability to transfer data into a billing system.

Availability (KVA)
Availability (kVA) or Agreed Capacity refers to the limit of capacity for a site. E.g. if a site has an Availability of 150 kVA then maximum demand should not exceed that figure at any time. It is set and charged by the local Distribution Network Operator (DNO), according to the kVA of a premise. This fee covers investment and maintenance of the electricity network and can also be called the Capacity Charge. Customers pay a fee (per unit) according to the agreed capacity for that site. In theory, maximum demand should not exceed the agreed capacity at any time.

Available Supply Capacity (ASC)
Also known as the Agreed Capacity, this is an agreed amount of electrical load for a property, as stated in the property’s Connection Agreement with the local Distribution Network Operator (DNO).

Base Load
Base load is the level below which electricity demand never drops, i.e. a site with a high maximum demand of 750 kVa whose demand never drops below 250 kVa would have a base load of 250 kVa.

British Electricity Trading And Transmission Arrangements (BETTA)
The BETTA arrangement was introduced in 2005 to create a single wholesale electricity market for Great Britain. It replacing NETA which did not cover Scotland.

Building Energy Rating (BER)
Legislation launch in March 2007. Under the proposed legislation the energy efficiency of new and existing non-residential buildings in terms of their heating and ventilating requirements will be judged against a naturally ventilated building benchmark.

Calorific Value (CV)
Amount of heat given by the specified quantity of gas. This is used to calculate the energy consumed based on the volume of gas used. It is measured in joules per kilogram.

Capacity Charge
A set charge by the local Distribution Network Operator (DNO) for investment and maintenance of the electricity network, based on the Agreed Capacity of a property. This can also be called the Availability Charge.

Climate Change Agreement
An agreement between the Government and a business user, whereby a reduced rate of Climate Change Levy is payable in return for a commitment by the user to achieve certain pre-determined targets for energy usage or carbon emissions.

Climate Change Levy (CCL)
CCL is a government-imposed tax to encourage reduction in gas emissions and greater efficiency of energy used for business or non domestic purposes. CCL is chargeable only on units/kWh used and not on any other component of the bill, e.g. standing charge. The rate of CCL is now index-linked and therefore likely to increase on 1 April each year.
Under current legislation:
Where VAT is charged at the standard rate, CCL (plus VAT on CCL) will usually be added to the bill where VAT is charged at the reduced rate, the supply is automatically excluded from CCL
Where VAT is charged at the standard rate but sites are entitled to full or partial relief from CCL, you will need to submit a PP11 Supplier Certificate for each site to advise us what percentage of relief is applicable. PP11s are only available from HM Revenue & Customs (HMRC) and can be downloaded from their website www.hmrc.gov.uk. Please note that PP11 Supplier Certificates are not transferable between suppliers.

Combined Half Hourly (HH) Data Charge
Costs associated with collecting and handling metering data from half hourly (HH) read meters.

Data Collector (DC)
An organisation accredited by the Pool Accreditation Body to carry out Data Collection for Half Hourly (HH) Metering Systems. The DC is appointed by the Suppliers to retrieve and validate metering data and forward it, by Metering System, to the Data Aggregator. The DC may be appointed by the customer but must always be accredited and contracted to the customer’s Supplier.

Deemed Contract
A contract which is deemed to apply when a customer begins a new supply at a property and has not signed a written contract for its supply. These contracts have a defaulted rate for supply until a customer requests a fixed price for a fixed period.

Distribution Network Operators (DNO)
Companies that are responsible for operating the networks that connect electricity consumers to the national transmission system and provide interconnection with embedded generation. There are 14 regional distributors who maintain the electrical network.

Distribution Use Of System Charges (DUOS)
These charges are published costs made by each Distribution Company for delivering electricity from the Grid Supply Point to the customer’s premises.

District Network Operator (DNO)
The DNO manages the installation and upkeep of the cabling, and the distribution of electricity to the grid supply point.

Domestic / Non Domestic Supply
A Supply Point with an AQ of 73,200kWH (2500 therms) or less, is deemed as a domestic site. (This does not mean the user is necessarily residential). A supply point with an AQ of over 73,00kWh is deemed as non-domestic.

Energy Cost
This is the cost of the electricity purchased on the wholesale market at the Notional Balancing Point (NBP) to cover current and predicted future usage. It is the single biggest component of the unit price and typically accounts for between 60 and 80% of a business’s total bill. In the industry, this element is called Energy at NBP (Notional Balancing Point).

Energy Efficiency
Achieving desired levels of lighting, heating or cooling for minimum energy use. Cutting down on waste energy. A good example is an energy efficient light bulb which produces the same amount of light as a conventional bulb but uses up to 75% less energy to do so.

Fixed Charge
A daily, monthly or quarterly charge levied by the supplier and is in addition to the standing charge.

Fixed Term Contracts
Supply contract for a fixed price, over a fixed period of time which gives customers a constant price. Fixed Charges include Standing Charges and Availability Charges.

Fossil Fuel Levy
In England and Wales the Fossil Fuel Levy is set at 0.3%. This levy was introduced to cover the cost of decommissioning the nuclear generating plants. The Scottish equivalent is called the S.R.O. (Scottish Renewable Order) levy which was set at 0.8%

Fuel Mix Disclosure (FMD)
The FMD regulations oblige all suppliers to calculate and publish the fuel source and emissions intensity of all the electricity they supply. This includes electricity generated by the supplier and electricity bought from other generators, either through contracts or in the marketplace.

Giga Watt (GW)
Giga Watt – 1,000 MW.

Half Hourly (HH) Meters
A communication device connected to the meter allowing the data collector to remotely connects to the meter, obtaining half-hourly consumption.

Half Hourly Data (HHD)
HHD is the product of the half-hour data meter. The data is usually made available to end users by way of a spreadsheet. A full years’ half-hour data will be a spreadsheet with approximately 18,520 cells of data.

Half Hourly Meters
Since April 1998, code 5 meters have been mandatory for all sites over 100 kva, and voluntary for sites under 100 kva. This meter sends your consumption record by telephone or radio every half-hour to a central data bank. The supplier will then receive this information from the data collector and bill the client accordingly.

Kilovolt Amperes (KVA)
Also known as Total Power. The resultant effect of the active (kW) and reactive (kVAr) power is the total power measured in kVa. Kva = kW/power factor.

Kilowatt / Hour (KW / A)
A standard unit of electrical power equal to 1,000 watts. Kilowatts are the units used to measure Maximum Demand. Kilowatt hour is a unit of energy consumed.

Load
The amount of electric power delivered or required at any specific point or points on an electrical system. The requirement originates at the energy-consuming equipment of the customer.

Load Factor
Measures the relationship between unit consumption and maximum demand and is the percentage capacity utilisation figure of a site’s power consumption. To calculate load factor take the total number of units of consumption, divide by the maximum demand, divide by the number of hours in the period, and multiply by 100.

Load Management
Where sites are flexible as to when they use their electricity. This means that they can schedule their production and shift patterns according to the price of pool electricity. Consumers who can load manage are able to significantly reduce their consumption at the three times in the year when the National Grid takes the Triad maximum demand readings which are used to calculate the transmission charges.

Unit Price
The price per unit of energy which includes 3 components only – energy wholesale price (energy at NBP), infrastructure costs and a cost to serve element

M Number Database
A web based application held by National Grid used by suppliers to view basic site details of sites not in their ownership. See xoserve.

Maximum Demand
Maximum Demand is the highest peak of usage (kWH) in any Half Hour during a calendar month or between two meter readings measured in either kW or kVA. This value is multiplied by 2 to give the MD on an hourly basis.

Mega Watt (MW)
Mega Watt – a measure of power, one million watts.

Meter Asset Manager (MAM)
A role that can be taken on by a number of parties who will manage a portfolio of meters on behalf of their client. They could control the meter replacement program, arrange Meter Work. The MAM will act as the point of contact for a meter point and can supply all known information regarding that meter point.

Meter Asset Provider (MAP)
The party responsible for the ongoing provision of the meter installation at that meter point. Where a MAP provides the meter, the MAM may be the owner (title owner) of the meter or the MAM could lease or rent the meter from a third party.

Meter Operator (MOp)
The organisation appointed to maintain metering equipment.

Meter Operator Charges (MOp Charges)
This charge covers the cost of maintaining metering equipment.

Meter Point Administration Service (MPAS)
Organisation that holds all information of MPANs. www.mpas-online.co.uk

Meter Serial Number
The number stamped on the front of the meter. This changes when meter is exchanged.

Micro-CHP
CHP (as above), but in very small scale, typically below 5kW electrical output, (e.g. in the residential and commercial sectors). It is likely to operate in place of a domestic central heating boiler.

Micro-Generation
The small-scale generation of energy, for example solar panels or domestic wind turbines. These are often referred to as generation from renewable sources at a domestic or small community level.

National Grid
The National Grid owns the main transmission systems and is responsible for transmitting the electricity from the generator to the local RECs area. All electricity generated in mainland UK is put into the National Grid before fed into distribution networks.

National Transmission System (NTS)
National Grid’s high pressure gas network.

Non Half Hourly (NHH) Meters
Unlike HH meter a meter reader must visit the site to obtain readings. There are different tariffs (SSC) available.

Non-Domestic
A supply point with an AQ of 73,200 kWH (2,500 therms) is deemed as a domestic site. A supply point with an AQ of over 73,00 kWh is deemed as non-domestic.

Office Of Gas And Electricity Markets (OFGEM)
OFGEM is the government regulator for Gas and electricity markets.

Pass Through Charges
Charges that appear on bills to cover the costs of third parties involved in the energy supply chain to deliver power.

Peak Demand
Point of maximum electricity demand on the national system.

Percentage Day
This refers to the percentage ratio of electricity used in the daytime against that used in the night. This information is used by suppliers to quickly identify the type of profile.

Photovoltaics (PV)
The direct conversion of solar radiation into electricity by the interaction of light with the electrons in a semiconductor device or cell.

Reactive Charges
Charges applied to a client’s invoice in cases where certain suppliers and distribution companies enforce a penalty for Reactive Power use.

Reactive Power (KVAR)
This is the difference between the electricity supplied and the electricity converted into useful power. If the difference is large, i.e. there is a large amount of power being wasted, its puts an additional strain on the distribution network. The loss of power can be caused by kinetic energy (heat) or through defective machinery. This is measured via the Reactive register on a meter and is charged to the customer depending on how much they accumulate.

Regulator
OFGEM is the Office of Gas and Electricity Markets, regulating the gas and electricity industries in the UK. This is a statutory body representing the interests of gas and electricity consumers in the UK.
Remote Non Half Hourly Meters
These meters have a NHH set up but they are connected to a communication device.

Renewable Energy
‘Renewable energy’ is used to describe the energy produced using naturally replenishing resources. This includes solar power, wind, wave and tide and hydroelectricity. Wood, straw and waste are often called solid renewable energy, while landfill gas and sewerage gas can be described as gaseous renewables.

Renewable Energy And Energy Efficiency Partnership (REEEP)
An international partnership to promote the growth of renewable energy and energy efficiency systems, launched by the UK at the World Summit on Sustainability Development (WSSD).

Renewable Energy Certificates (REC’s)
RECs, also known as ‘Green Certificates’, green tags, or tradable renewable certificates, represent the environmental attributes of the power produced from renewable energy projects and are sold separate from commodity electricity.

Renewable Energy Guarantee of Origin (REGO)
Electronic certificate used to provide evidence that a unit of electricity has been produced by a renewable generator. One REGO representing one kilowatt/hour of electricity. In some countries they are called Guarantees of Origin – GoOs.

Renewable Obligation (RO)
This is the main government market mechanism to support renewable energy. It is an obligation on all electricity suppliers to supply a certain amount of their electricity sales from accredited renewable sources under the Climate Change Levy exemption scheme.

Renewable Power Association (RPA)
The Renewable Power Association is a trade association open to all companies supportive of the UK renewable energy industry.

Renewables Obligation (UK)
The new Renewables Obligation and associated Renewables (Scotland) Obligation came into force in April 2002 as part of the Utilities Act ( 2000 ). It requires power suppliers to derive a specified proportion of the electricity they supply to their customers from accredited renewable sources. This starts at 3% in 2003, rising gradually to around 10% by 2010 and 15.4% in 2015/16.

Service Industry Code (SIC)
The SIC is a standard classification code which identifies the types of business conducted at the site.

Smart Metering
The ability to remotely read non-half hourly (NHH) meters. Data is more reliable and more accurate bills are produced.

Standing Charge
Is a daily or monthly charge to contribute towards installation, maintenance and administration costs for the local Distribution Network Operator (DNO).

Supplier
A person authorised by a supply licence to supply electricity or gas to the National Grid Network, via the Shipper.

Supply Number
S-Number (also known as MPAN – Meter Point Administration Number). A unique number identifying the distribution company and the location of the metering point.

Tariff Structure
Suppliers quote for electricity in numerous different formats. These range from simple one-rated structures (the same price per kW at all times throughout the year) to complex “Seasonal Time of Day” tariffs which are multi-rated. i.e. the price changes three, six or eight times a day.

Transmission Use of System (TUoS)
The charges are incurred for transmitting electricity across the National Grid network from the source of generation to the network of the local distribution company.The level of these charges is usually calculated by applying a rate charge to the TRIAD demand level.

Transportation Charge
A charge made by National Grid for the national transport of the shippers’ gas through the gas network (National and Regional Transmission system and the low and medium pressure distribution system) to the customer. The transportation charge consists of three elements, which are dependent on the locations of the particular terminal and offtake site: capacity charge; commodity charge; and site charge.

Triad
It is used to calculate TUoS Charges. the TRIAD is calculated by looking at the three maximum demand points (in kW) of the supply at half hourly time periods, and then averaging the total. The figures used are usually selected from winter months, and at peak times, as these periods are set to reflect the point at which the highest demand occurs on the National Grid.

UK Kyoto Target
Kyoto target – all greenhouse gases 12.5% below 1990 levels by 2008-12 National goal – CO2 20% below 1990 levels by 2010 Long-term goal – Reducing CO2 emissions by some 60% from current levels by 2050

UN Framework Convention on Climate Change (UNFCCC)
The international framework established in 1992 to tackle the issue of climate change and greenhouse gas emissions. The UNFCCC aims to prevent dangerous man-made climate change and commits developed countries to take the lead in tackling climate change.

Unit Price
The price per unit of energy which includes 3 components only – energy wholesale price (energy at NBP), infrastructure costs and a cost to serve element

Value Added Tax (VAT)
VAT is a government-imposed tax on the supply of goods and services. There are currently 2 rates of VAT applicable to supplies of electricity and gas – the standard rate and the reduced rate. On supplies used solely for business purposes, VAT will usually be charged at the standard rate. Where supplies are wholly or partly for domestic or charitable non-business use, that part of the supply qualifies for the reduced rate of VAT. This is known as ‘qualifying use’. Customers with qualifying use will need to submit a VAT Customer Declaration Certificate for each site, to advise us what percentage of the supply meets the qualifying criteria set by HM Revenue and Customs (HMRC). Please note that VAT Declaration Certificates are not transferable between suppliers.

XOSERVE
Xoserve, delivers transportation transactional services on behalf of all major gas transportation companies